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Dorsey Company manufactures three products from a common input in a joint processing operation. Joint...

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Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, thc company allocates thesc costs to the joint products on the basis of their relative sales valuc at the split-off point. Unit selling prices and total output at the split-off point are as follows: Quarterly Output 15,000 pounds 20,000 pounds 4,000 gallons Product Seling Price $16 per pound $8 per pound $25 per gallon Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Selling Price Product Processing Costs $63,000 $80,000 13 per pound $36,000 $20 per pound $32 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing cach of the three products beyond the split-off point? 2. Based on your analysis in rcquirement 1, which product or products should bc sold at thc split-off point and which product or products should be processed further

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